Goldman Sachs' MMF Gets Affirmation After Fitch's Strict Review

Fitch Ratings affirms the 'AAA V1+' ratings assigned to the Goldman Sachs Prime Obligations Money Market Fund, a money market fund managed by Goldman Sachs Asset Management, L.P. (GSAM). The affirmation is a result of Fitch's annual review of the

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Fitch Ratings affirms the ‘AAA/V1+’ ratings assigned to the Goldman Sachs Prime Obligations Money Market Fund, a money market fund managed by Goldman Sachs Asset Management, L.P. (GSAM).

The affirmation is a result of Fitch’s annual review of the fund and is based on the high credit quality of the funds’ assets and the capabilities of GSAM as investment advisor. As of 14 January 2009, the portfolio had approximately $34.2 billion in total assets under management.

The Goldman Sachs Prime Obligations Money Market Fund aims to maximize current income to the extent consistent with the preservation of capital and maintenance of liquidity by investing exclusively in high credit quality money market instruments.

As of 14 January, 38% of the fund’s total assets were invested in asset-backed (ABCP) and unsecured commercial paper, 36.4% were in government agency securities, 11.9% were in overnight repurchase agreements, 7.1% were in banks notes and certificates of deposit, 5.4% were in corporate notes, and 1.2% were in funding agreements.

The fund invests in ABCP programs sponsored by large money center banks backed by pools of receivables as well as high credit quality debt securities. In addition to liquidity support facilities associated with such ABCP conduits, the portfolios benefit, albeit on a temporary basis, from the liquidity afforded to ABCP programs under the terms of the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility.

The fund maintains a credit quality by investing in securities rated at least ‘A/F1’ by Fitch or being of a comparable credit quality by other global rating agencies. In addition, the fund continues to participate in the U.S. Treasury Department’s Temporary Guarantee Program for Money Market Funds.

GSAM is an affiliate of Goldman Sachs Group (rated ‘A+/F1+’ by Fitch). GSAM manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investment products. Fitch views GSAM’s investment advisory capabilities, resource commitment, operational controls, corporate governance, and compliance procedures as consistent with the rating assigned to the fund.

L.D.

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